In my previous two posts, I have highlighted that most companies have the potential to release cash trapped in working capital for everyday liquidity and also to fund growth. But knowing the opportunity exists is very different from actually realising it – something that’s incredibly difficult to achieve within everyday business activities.
Having led transformation programmes across sectors as varied as utilities, engineering, retail, manufacturing and public services, I’ve seen firsthand the difference a diagnostic mindset can make. It’s not about superficial fixes – it’s about unearthing the underlying drivers of poor performance, whether they sit in customer behaviour, process design, technology limitations or inventory misalignment.
My Approach
Working capital spans Order-to-Cash (OtC), Procure-to-Pay (PtP), and Forecast to Fulfil (FtF). Addressing it demands more than a toolkit. It demands perspective, precision, and pragmatism. Here’s how I help organisations address root causes to deliver sustained improvement:
Diagnosing root causes with clarity and objectivity
Getting to the heart of working capital performance starts with a blend of quantitative analysis and insider perspective. My approach involves interviewing process owners and internal customers for real-world, anecdotal insights, surfacing what happens in daily routines that might not show up on a dashboard. This qualitative feedback is paired with a close analysis of transactional data to uncover the real causes of bottlenecks and cash traps.
For Order-to-Cash:
I review how quickly bills are issued after goods or services are delivered, the terms offered to customers, and actual payment behaviour – how promptly customers are paying, the causes, incidence and impact of disputed invoices, and how often incoming cash is unmatched. This clarifies both operational and behavioural barriers to healthy cash flow.
For Procure-to-Pay:
I assess supplier payment terms and how consistently they are applied, purchase order (PO) compliance, and any differences between agreed and actual payment timelines. I’ll also examine the uptake and impact of early settlement discounts, as these can be a lever for optimising outflows.
For Forecast to Fulfil:
I focus on forecast accuracy (do demand forecasts reflect reality), the frequency and cost of stockouts (lost sales opportunities), and average days of cover (how much inventory is held versus what’s needed). This highlights both process and decision-making gaps contributing to excess or insufficient inventory.
By combining these diagnostic steps, I help organisations address root causes and tackle the underlying causes of working capital inefficiency, setting a strong foundation for targeted improvement programmes.
Designing initiatives grounded in sector-specific realities and behavioural insight
Effective transformation requires more than good ideas; it demands solutions shaped by and for the people who will deliver them. I work directly with key business stakeholders to ensure initiatives are practical and tailored to the client’s unique context. Together, we design changes that balance operational needs, process realities, and behavioural tendencies, ensuring the interventions will work on the ground.
For every opportunity identified, I quantify the potential cash and cost reduction benefits, providing a clear business case for action. Implementation requirements are set out in detail, clarifying what is needed in terms of systems, people, and process changes. Working side-by-side with stakeholders, we then prioritise these initiatives, using criteria such as ease of implementation and expected financial impact. This ensures resources are focused where the greatest value can be delivered, as efficiently as possible.
Setting up for success
Delivering change calls for more than just a plan; It requires giving the business all it needs to move forward with confidence and clarity. I build an implementation plan that maps out the entire journey from concept to realisation, highlighting milestones, dependencies and potential risks. Every step ties back to working capital improvement and liquidity outcomes, making the value clear for stakeholders. A robust governance structure is designed to steer the programme, ensuring the right level of oversight, decision-making, and accountability at every stage.
Equally important is establishing a benefits tracker to measure progress and quantify the value delivered, both during and after implementation. I also provide a clear outline of resource requirements, so the business knows exactly what skills, capacity, and commitment are needed for success. The result? An empowered team, supported by clear structures and tools, fully equipped to execute the initiatives and realise sustainable working capital improvements.
While these diagnostics can highlight where to focus, turning insights into results is most powerful with an impartial, outside perspective and robust data analysis. Bringing in an independent expert ensures not only that issues are correctly identified, but that opportunities are fully realised and change is embedded for the long term. If you’d like a confidential conversation about your business’s unique opportunities, let’s connect and start the journey toward optimised working capital, together.